Supreme Court Blocks Controversial Purdue Pharma Opioid Bankruptcy Settlement

It looks like the Sackler family, head of the Purdue Pharma company that drove the opioid crisis, is not off the hook from future lawsuits anymore.

GOOD.

The Supreme Court took the bold step of blocking a very controversial bankruptcy settlement that would have cost Purdue $6 billion dollars that would have shielded them from all future lawsuits. The 5-4 decision stated that bankruptcy code does not shield the family from future opioid lawsuits, which was their goal. Make the COMPANY file bankruptcy and pay, the family does not suffer at all.

The opinion means that states and individuals who were counting on part of that $6 billion will have start negotiations again. Gorsuch wrote the opinion, saying:

“No one has directed us to a statute or case suggesting American courts in the past enjoyed the power in bankruptcy to discharge [such] claims … all without the consent of those affected."

In layman's terms: we cannot allow bankruptcy to protect you without allowing those affected by your misdeeds to consent or agree.

Gorsuch was joined by Alito, Crow-Thomas, Jackson and Barrett.

Purdue had attempted to get away with the literal murder of hundreds of thousands of people by filing for bankruptcy in 2019. At that time, it was facing thousands of lawsuits related to its killer (literally) product: OxyContin.

The DOJ's Office of the U.S. Trustee challenged the bankruptcy arrangement, saying it violated federal law. The Supreme Court agreed.

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